31 The following information relates to the defined benefit pension plan of Wendy Corporation for the year ending December 31, 2012: Pension benefit obligation Pension fund assets Service cost Interest cost Expected return on fund assets $4,600,000 5,035,000 450,000 32,500 425,000 What is the net pension asset or liability for Wendy corporation in 2012? $435,000 pension asset $425,000 pension asset $425,000 pension liability $435,000 pension liability

31 The following information relates to the defined benefit pension plan of Wendy Corporation for the year ending December 31, 2012: Pension benefit obligation Pension fund assets Service cost Interest cost Expected return on fund assets $4,600,000 5,035,000 450,000 32,500 425,000 What is the net pension asset or liability for Wendy corporation in 2012? $435,000 pension asset $425,000 pension asset $425,000 pension liability $435,000 pension liability

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter19: Accounting For Post Retirement Benefits

Section: Chapter Questions

Problem 4E

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6) The following facts apply to the pension plan of Trudy Borke Inc. for the year 20X1: Plan assets, January 1 20X1 $490,000Projected benefit obligation January 1 20X1 490,000Settlement rate 8.5%Annual pension service cost 40,000Contributions (funding) 30,000Actual return on plan assets 49,700Benefits paid to retirees 33,400 What is the pension expense for 20X1?
#13On January 1, 2020, Shaina company had a projected benefit obligation of 2,500,000 and apension fund with a fair value of 2,300,000. The entity provided the following informationrelated to the pension plan during the current year:Current service cost 300,000Actual return on the pension fund 62,500Benefits paid to retirees 275,000Contribution to the pension fund 262,500Discount rate 9%Expected return on pension fund 10%What is the pension expense for the current year? The answer is 318,000 pls provide the correct solution for this
Selected information about the pension plan of Crane Co. is as follows: 12/31/20 12/31/21 Accumulated benefit obligation $4,830,000 $5,060,000 Projected benefit obligation 5,080,000 5,280,000 Accumulated OCI (PSC) 2,008,000 1,630,000 Fair value of plan assets 4,815,000 5,080,000 Pension expense 1,130,000 1,830,000 Contribution 1,115,000 1,415,000 Discount rate (for year) 9% 8% (a) What is the corridor for 2021? Corridor for 2021 $ b,cakulate the pension asset/liability at december 31,2021 pension $ c.prepare the entry for 2021to record the pension
J The following information relates to the defined benefit pension plan for the Nicola Company for the year ending December 31, 2020. Defined benefit obligation, January 1 P4,600,000 Defined benefit obligation, Dec. 31 4,729,000 Fair value of plan assets, January 1 5,035,000 Fair value of plan assets, Dec. 31 5,565,000 Expected return on plan assets 450,000 Employer contributions 425,000 Benefits paid to retirees 390,000 Settlement rate 10% Service cost for the year would be Group of answer choices P94,000 P59,000 P390,000 P129,000
Question 21 Sage Company provides the following selected information related to its defined benefit pension plan for 2020. Pension asset/liability (January 1) $25,600 Cr. Accumulated benefit obligation (December 31) 400,600 Actual and expected return on plan assets 10,400 Contributions (funding) in 2020 148,800 Fair value of plan assets (December 31) 796,000 Settlement rate 10 % Projected benefit obligation (January 1) 698,500 Service cost 79,600 (b) Indicate the pension-related amounts that would be reported in the company’s income statement and balance sheet for 2020. Sage CompanyIncome Statement (Partial) $…
. The following information pertains to Sowell Corporation's defined benefit pension plan: 2022 2023 Beginning Beginning ($ in thousands) balances balances Projected benefit obligation $ (6,000) $ (6,504) Plan assets 5,760 6,336 Prior service cost–AOCI 600 552 Net loss–AOCI $ 720 $ 786 At the end of 2022, Sowell contributed $696 thousand to the pension fund and benefit payments of $624 thousand were made to retirees. The expected rate of return on plan assets was 10%, and the actuary's discount rate is 8%. There were no changes in actuarial estimates and assumptions regarding the PBO. What is the 2022 pension expense for Sowell's plan? A. $594 thousand. B. $606 thousand. C. $678 thousand. D. None of these are correct.
7. Sheridan Company received the following selected information from its pension plan trustee concerning the operation of the company’s defined benefit pension plan for the year ended December 31, 2020. January 1, 2020 December 31, 2020 Projected benefit obligation $1,517,000 $1,545,000 Market-related and fair value of plan assets 784,000 1,107,400 Accumulated benefit obligation 1,568,000 1,689,300 Accumulated OCI (G/L)—Net gain 0 (201,700 ) The service cost component of pension expense for employee services rendered in the current year amounted to $78,000 and the amortization of prior service cost was $121,300. The company’s actual funding (contributions) of the plan in 2020 amounted to $245,000. The expected return on plan assets and the actual rate were both 10%; the interest/discount (settlement) rate was 10%. Accumulated other comprehensive income (PSC) had a balance of $1,213,000 on January 1, 2020. Assume no benefits paid in…
11. Cullumber Corp. has the following beginning-of-the-year present values for its projected benefit obligation and market-related values for its pension plan assets. ProjectedBenefitObligation PlanAssetsValue 2019 $2,040,000 $1,938,000 2020 2,448,000 2,550,000 2021 3,009,000 2,652,000 2022 3,672,000 3,060,000 The average remaining service life per employee in 2019 and 2020 is 10 years and in 2021 and 2022 is 12 years. The net gain or loss that occurred during each year is as follows: 2019, $285,600 loss; 2020, $91,800 loss; 2021, $11,220 loss; and 2022, $25,500 gain. (In working the solution, the gains and losses must be aggregated to arrive at year-end balances.)Using the corridor approach, compute the amount of net gain or loss amortized and charged to pension expense in each of the four years, setting up an appropriate schedule. Year Minimum Amortization of Loss 2019 $enter a dollar amount 2020 $enter a…
14 Fajardo Company provided the following pension plan information: Projected benefit obligation – January 1, 2021 3,500,000 Fair value of plan assets – January 1, 2021 2,800,000 Pension benefits paid during the year 250,000 Current service cost for 2021 1,750,000 Past service cost for 2021 425,000 Actual return on plan assets 180,000 Contribution to the plan 1,500,000 Actuarial loss due to change in assumption on PBO 200,000 Discount or settlement rate 10% What is the fair value of plan assets on December 31, 2021? Group of answer choices 4,050,000 4,480,000 4,300,000 4,230,000 PreviousNext
4 You gathered the following information related to Ashley Company’s the defined benefit plan for the current year ended December 31: Fair value of plan assets: P2,100 million at January 1, and P2,300 million at December 31 Present value of obligation to provide benefits: P2,200 million at January 1, and P2,600 million at December 31 Contributions paid to the fund: P80 million Benefits paid to retired employees: P50 million The defined benefit cost for the year is Group of answer choices P200 million P250 million P280 million P120 million
18 Fajardo Company provided the following pension plan information: Projected benefit obligation – January 1, 2021 3,500,000 Fair value of plan assets – January 1, 2021 2,800,000 Pension benefits paid during the year 250,000 Current service cost for 2021 1,750,000 Past service cost for 2021 425,000 Actual return on plan assets 180,000 Contribution to the plan 1,500,000 Actuarial loss due to change in assumption on PBO 200,000 Discount or settlement rate 10% What amount should be reported as accrued benefit cost on December 31, 2021? Group of answer choices 1,045,000 1,750,000 1,745,000 700,000
The following facts apply to the pension plan of Trudy Borke Inc. for the year 20X1: Plan assets, January 1 20X1 $490,000 Projected benefit obligation January 1 20X1 490,000 Settlement rate 8.5% Annual pension service cost 40,000 Contributions (funding) 30,000 Actual return on plan assets 49,700 Benefits paid to retirees 33,400 What is the pension expense for 20X1? items Annual Pension expense cash Pension asset/liability Projected Benefit Obligation Plan Assets Balance, January 1, 20X1 $490,000 Cr. $490,000 Dr. service cost $40,000 Dr. $40,000 Cr. interest cost $49,700 Dr. $49,700 Cr. actual return $49,700 Cr. $49,700 Dr. contributions $30,000 Cr. $30,000 Dr. Benefits $33,400 Dr. $33,400 Cr. journal entry for 20X1 $40,000 $30,000 Cr. $10,000 Cr. Balance 20X1 $10,000 Cr. $546,300 Cr. $536,300 Dr.